more-arw search

Durbin Calls Out Wells Fargo for Raising Debit Card Fees

Senator Dick Durbin says banks shouldn't increase their debit card fees for cu

In light of a recent announcement from Wells Fargo that its profits during the third quarter had jumped 21 percent, Senator Dick Durbin sent a letter to the company, confronting it for raising fees for its debit card customers.

Durbin said public information suggested the company would

In light of a recent announcement from Wells Fargo that its profits during the third quarter had jumped 21 percent, Senator Dick Durbin sent a letter to the company, confronting it for raising fees for its debit card customers.

Durbin said public information suggested the company would earn "at least an estimated $1.22 billion in annual debit interchange revenue after swipe fee reform," a total that was much higher than the company's cost for processing the transactions. "Instead of making up costs, your new consumer fee appears to be a plain attempt to increase your profits - even though your bank just reported third quarter profits that hit a record high," he said.

According to the company's third quarter report, its revenues dropped to $19.6 billion, down from Q2's total of $20.4 billion. Additionally, it pulled in a net income of $4.1 billion, a 3 percent gain over last quarter's amount. Wells Fargo and other banks, including Bank of America and Chase, have shared plans to increase their fees for customers who use debit cards.

In his letter, Durbin acknowledged that Wells Fargo and other organizations were upset about losing out in billions in revenue from swipe fees. But he said it had not "earned" the fees in the first place, only piggybacked on the practices and policies of major credit card companies such as MasterCard and Visa.  

Products and Companies: